Hi all. hope that you all are doing great. I took the live mock a while ago and came up with this derivatives question that i can’t comprehend that relates to Pay Fixed - Receive Equity. While it seems obvious to the most of us that you calculate the Pv of the remaining Fixed payments and calculate the payoff of the equity swap “the change in the level index” and decide who pays what to whom; schweser say that _"_Since the value of the equity side of the swap returns to “the notional value” (10 million) at each settlement date, the net value of the pay fixed position is −£129,621.
this is the first time to encounter this situation where the Swap returns to the notional, Any help?